UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 15402 / July 2, 1997
SECURITIES AND EXCHANGE COMMISSION v. AFFORDABLE PREPAID CELLULAR, INC.
AND
JOHN C. ROCKETT, Civil Action No. 97-3750 RAP (JGx) (C.D. Cal.).
The Securities and Exchange Commission announced that on June 3,
1997,
the Honorable Richard A. Paez, United States District Judge for the
Central
District of California, issued an order of preliminary injunction
against
Affordable Prepaid Cellular, Inc., and its part-owner and Vice
President,
John C. Rockett ("Rockett"). APC is based in Lake Forest, California,
and
its stated business is to provide prepaid cellular telephone service
to
"credit-challenged" individuals. The Court s Order also continued the
freeze of APC s and Rockett s assets until trial, prohibits APC and
Rockett
from destroying documents, and requires APC and Rockett to account
for
investor funds. So far, neither APC nor Rockett has answered the
Commission s complaint, and neither has complied with the Court
ordered
accountings.
The Commission's complaint (filed May 20, 1997), and other
papers
filed in the case, allege that APC and Rockett fraudulently offered
and/or
sold units in APC, in the form of $5,000 corporate notes, to at least
one
hundred individuals since December 1996. According to APC, in return
for
their investment, APC promised investors a guaranteed 16 3/4% annual
return, plus 1% of half of APC's profits, and that the investor's
original
contribution would be returned at the end of one year. Further, APC
promised that investors' monies would be used to fund APC's business
SNIPPETS:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION v. AFFORDABLE PREPAID CELLULAR,
JOHN C. ROCKETT, Civil Action No. 97-3750 RAP (C.D.
United States District Judge for the Central
District of California, issued an order of preliminary injunction against Affordable Prepaid
APC is based in Lake Forest, California, and its stated business is to provide prepaid
The Court s Order also continued the freeze of APC s and Rockett s assets until trial,
So far, neither APC nor Rockett has answered the Commission s complaint, and neither has
The Commission's complaint, and other papers filed in the case, allege that APC and Rockett
According to APC, in return for their investment, APC promised investors a guaranteed 16 3/4%
Wire transferring at least $113,020 from APC s bank accounts to accounts in
Withdrawing from APC s bank accounts at least $243,480, by writing checks up to $80,000 each
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